69% of Organizations Document their Processes, but Only 4% Measure and Manage Them
Beyond tangible products, business processes are at the very core of service quality, company culture, supplier relations, go-to-market feasibility and many other essential elements of an organization. While more than 2⁄3 of organizations go to the trouble of documenting business processes, only 4% bother to measure and manage them. This can result in unknown process deviations.
What is a process deviation?
Process deviations come in many forms and are defined as the measured departure from a documented standard. It’s the gap between what should be and what is — a delivery without a purchase order, a purchase without a required quote or a shipment without an invoice number. Even with automated processes, strict process guidelines and robotic process automation, process deviances occur on a daily basis with little regard to industry or company size.
Why is process monitoring important?
As companies become more reliant on the seamless integration of multiple moving parts, not just a product or service itself, the need for process documentation and monitoring become essential. Process monitoring brings process documentation to life and delivers a fact-based view of how operations transpire in reality. The importance of process documentation and monitoring can be illustrated by something as simple as opening your refrigerator door.
Dinner party of one — limited process
It’s 8pm, you’re at home scouring the fridge trying to figure out what to cook for dinner. You find a few ingredients and throw them together without a recipe. It’s just you, so it’s OK if things go wrong. No extravagant process needed, just don’t burn the house down.
Dinner party of ten — process planning
Now, it’s the weekend and you’re hosting a dinner party. 10 friends and a bit more pressure to deliver something tasty. You can still pull things off by yourself, but random ingredients in your refrigerator alone won’t do. Now you need the guidance of a shopping list, cookbook and a bit more process planning (who will sit where? when will appetizers be served? how to keep everything hot?). Process planning is required. The dinner party is a big success.
Food truck — process documentation
Next, you really dive into your culinary talents to open a food truck. Process documentation is now mandatory. Employees need guidance, food safety standards require tight logistics and suppliers require on-time payment. Process documentation ensures smooth business operations on multiple fronts. The refrigerator door is in constant motion.
Restaurant opening — process monitoring and measuring
Finally, you get funding to open a proper restaurant. To succeed in a competitive market where delicious food is a baseline, not USP, you as a business owner are responsible for process optimization (or hiring someone to do it for you). You must understand how to best staff your kitchen, how to keep inventory in stock and the best flow for an evening of successful service. No longer can a sparse fridge do the trick, you need to monitor and measure details of restaurant operations to maintain longevity in the industry.
Digging into process monitoring
Just as ‘dinner for one’ requires different approaches to processes than a full-scale restaurant, the complex web of systems and stakeholders gets increasingly intertwined as an organization grows. Process steps must move from the unreliable mental memorization of a handful of people into a more formal system which can be accessed at any moment by anyone. With 69% of organizations actively documenting processes, documentation is a clear minimum standard for operations to thrive. The other 31% who operate on an ad-hoc basis will only make it so far before lack of process documentation pokes too many holes in the ship.
Moving a step deeper from process documentation, only 4% of organizations go to the trouble of measuring what they have so painstakingly documented. The absence of process monitoring is a big missed opportunity for businesses and, in many cases, a vulnerability. As the complex web of systems and relationships react to incoming events, the need for process monitoring grows. Even the most well-oiled machines eventually squeak, and process deviations are bound to happen. However, they are not bound to collapse an organization if properly monitored.
Real-time process monitoring with Minit
Minit specialises in process monitoring and supports organisations in moving from the beginning stages of process documentation to advanced efforts of process monitoring and measuring.
In Minit, you can easily clone any previously analysed process including the complete analysis (process views). This allows you to repeat a process analysis that took the analyst 2 weeks to complete, and refresh it with new data whenever you need, or on a regular basis using the automatic data refresh functionality to continually monitor and measure any process.
Check process compliance
Have you ever wondered, how your real-life process complies with your documentation? How does your daily operation differ from internal regulations or does it follow legal rules?
If your process documentation includes a BPMN diagram, Minit allows you to use process compare functionality to find the answers to these questions. Just use the existing BPMN standard compliant diagram or model your desired process in any of the available modelling tools and add easily compare it the the reality.
Get in touch with our team to see process monitoring in action.
19. 02. 2019